Raydium Teeters on the Edge: Can $2.2 Hold the Line?

Solana's favorite DEX token flirts with danger as bears test critical support.

Raydium (RAY) bulls cling to hope—but another leg down could trigger a liquidity bloodbath. The $2.2 level now acts as crypto's latest psychological battleground.

Meanwhile, 'risk managers' at hedge funds still can't tell DeFi from a PDF. Priorities.

Do Raydium bulls have a good chance of holding the $2.4 support?

Source: RAY/USDT on TradingView

Naturally, RAY’s structure has been range-bound since April, with price oscillating between $2.4 and $3.4. The mid-range level sat at $2.9, and the brief breakout in May now looks like a fakeout.

Over the past two weeks, the CMF has fallen well below -0.05. This indicated severe selling pressure and sizable capital outflow in the RAY market.

With the token threatening to free-fall below the range low, an influx of buying pressure WOULD be welcome.

The A/D indicator showed no such sign.

It has slowly fallen lower over the past three weeks, reflecting weakness from the bulls. The RSI also underlined firm bearish momentum after Raydium’s plunge from $3.

Liquidation data paints a risky picture

Source: Coinglass

The 1-month Liquidation Heatmap from Coinglass showed that the $2.2-$2.3 region was a target for RAY in the coming days. It had a sizeable amount of liquidations and lay close to the current market price.

Hence, a Raydium Price move lower was expected. It could reverse from the $2.2-$2.25 region, just below the range lows, and initiate a rally.

However, AMBCrypto noticed that the 3-month liquidation heatmap revealed a sizable chunk of liquidity at the psychological $2 level as well.

Therefore, if RAY bulls were unable to stop the bears at the $2.2 mark, another 10% drawdown could be around the corner.

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion